Oil prices hit a three-month high amid tighter US sanctions and extreme weather
The new sanctions, aimed at Russian oil producers, transporters, intermediaries, traders, and ports, are designed to disrupt every segment of Russia’s oil production and distribution network.
Global crude oil benchmark surged nearly 3% to their highest level in three months on Friday, January 10, driven by the announcement of broader US sanctions targeting Russia’s energy sector. The measures, introduced by the Biden administration, are expected to tighten oil supply in the global market.
Brent crude increased by $2.84 to settle at $79.76/barrel.
WTI edged up by $2.65 to settle at $76.57/barrel.
The new sanctions, aimed at Russian oil producers, transporters, intermediaries, traders, and ports, are designed to disrupt every segment of Russia’s oil production and distribution network. The impact of these sanctions was evident even before the official announcement, as some refiners in India and China began shifting their crude oil supplies from the Middle East and the Atlantic Basin. This shift reflects growing concerns over potential supply disruptions from Russia and Iran.
Additionally, the bullish market sentiment was further supported by heightened demand for heating oil due to severe cold weather conditions in the US and Europe.
-----------------------------------
Written by: Muhammad Hafiz